I use this blog to gather information and thoughts about invention and innovation, the subjects I've been teaching at Stanford University Continuing Studies Program since 2005.
The current course is Principles of Invention and Innovation (Summer '17).
Our book "Scalable Innovation" is now available on Amazon http://www.amazon.com/Scalable-Innovation-Inventors-Entrepreneurs-Professionals/dp/1466590971/

Saturday, February 18, 2012

Will robots kill Tesla Motors?

Robotization may make electric cars viable even if consumer demand doesn't pick up for some time.

Feb 16, MTR -- "The [car] industry is getting very good at making profits on lower volumes of
vehicles for niche applications," says Jay Baron, CEO of the Center for
Automotive Research. In part, this is because factories are using more
robots, and robots that can perform more functions, so they can be
quickly reprogrammed to make different vehicles. Some automakers have
announced that they will offer three versions of a car—one
gasoline-powered, one hybrid, and another electric.

This means Tesla Motors will have a hard time being an independent car maker. Their best shot at profitability would probably be through technology licensing and/or key component manufacturing. They just don't have the economies of scale to invest in full-blown robotic assembly lines.